Kleiner Perkins, the renowned venture capital firm, has announced the successful raise of $3.5 billion in new funds, primarily aimed at advancing artificial intelligence startups. This funding round includes $1 billion allocated to KP22 for early-stage ventures and $2.5 billion dedicated to growth-stage companies, marking a significant increase from their previous $2 billion fundraise in 2024. The firm highlights the current AI super-cycle as a pivotal opportunity for company growth, with AI-powered startups evolving rapidly. Established in 1972, Kleiner maintains a diverse investment portfolio across sectors such as healthcare, security, financial services, and more. Recent major investments include a $600 million Series F for autonomous vehicle tech firm Applied Intuition and substantial rounds for AI-centric companies Chainguard and Harvey. Kleiner has also led notable exits like the IPO of Figma and the acquisition of Brex by Capital One. With a legacy of backing industry giants like Google, Uber, and Airbnb, Kleiner continues to play a vital role in shaping the future of technology and venture capital.

The surge in billion-dollar startups hit a new high in 2025 with 187 new companies joining the unicorn ranks, a 61% rise fueled largely by advancements in AI. Veteran investors like Sequoia Capital and Andreessen Horowitz led the charge, participating in the most deals among these breakout companies. Yet, a wave of rising venture firms — Redpoint, Felicis, Ribbit Capital, 8VC, and Amplify Partners — are making significant strides, signaling a shift in the venture capital landscape. These firms are capturing early-stage investments in promising startups, particularly AI-native ventures, which accounted for a quarter of last year's unicorns. This trend reflects a faster, more competitive market environment where staying ahead means continually backing tomorrow’s tech leaders. The Unicorn Board's growth underscores a robust ecosystem where innovative funding, strategic backing, and fast-paced development define success.

Denki, a San Francisco startup founded in 2025 by brothers Felipe (24) and David Jin Li (20), has raised $4.1 million to develop AI-powered software aimed at automating the financial audit process for public companies. With a goal to modernize audits—which traditionally involve labor-intensive evidence gathering—Denki’s platform enables faster evidence review, enhanced documentation, and more rigorous testing of controls, helping companies better comply with financial regulations while cutting costs. The funding round was co-led by Base10 Partners and Shine Capital, with participation from Y Combinator (which Denki attended in fall 2025), 20VC, and others. The Jin Li brothers bring strong technical backgrounds: Felipe focuses on explainable AI and David has experience in financial data management. Denki aims to replace Excel-based audit methods with more reliable software solutions that reduce risks like AI-generated fraud. Currently a two-person team, the startup plans to expand with the new capital to meet growing demand amid increasing regulatory scrutiny and penalties for audit failures.

Science Corp., a biotech startup specializing in brain-computer interface technology, announced it has raised $230 million in a Series C funding round. Investors include Lightspeed Venture Partners, Khosla Ventures, Y Combinator, IQT, and Quiet Capital. Since its founding in 2021 by Neuralink co-founder Max Hodak and former Neuralink leader Alan Mardinly, the company has raised $489 million in total. Science Corp. is developing brain and retina implant systems to treat neurological and eye diseases, with plans to expand its clinical trials for its PRIMA BCI retinal implant to additional retinal conditions. The company recently acquired MEMS manufacturing assets to produce neural interface chips in-house, aiming to speed development and reduce costs. This rally of investment highlights the growing interest and competition in neural interface technologies, with other startups like Neuralink, Stairway Medical, and Paradromics also securing significant funding and advancing their technologies.

Eight Sleep, a New York-based startup focused on sleep technology, announced securing $50 million in funding at a $1.5 billion valuation. Led by Tether Investments, this strategic investment marks the company's second raise in a year, bringing total funding to over $250 million. Founded in 2014, Eight Sleep initially gained attention with its smart mattress, the Pod, which uses sensors and AI to optimize users' sleep by tracking and analyzing physiological data. The new capital will support the company's growth from sleep optimization into broader predictive, AI-driven health services. In 2025, Eight Sleep became cash flow positive and introduced three new products: Pod 5, Pod Pillow Cover, and Thermal Blanket. CEO Matteo Franceschetti highlighted the company's ambition to leverage its advanced AI health sensing technology beyond sleep, aiming to become a leading health technology company of this generation. The funding reflects broader investor interest in sleep and health tech, with companies like Oura also attracting substantial investment.

While AI's ability to weaponize biology is not widely discussed, seed-stage investors are betting heavily on biosecurity startups leveraging AI. Recently, two companies have raised significant seed funding with OpenAI as a notable backer. Valthos, which uses AI to detect biological threats and develop countermeasures, secured $30 million last fall with support from Founders Fund, Lux Capital, and OpenAI. Shortly after, Red Queen Bio raised $15 million, led by OpenAI, focusing on accelerating biosecurity defenses as AI advances. In the nonprofit realm, SecureBio obtained $1.4 million in grants to address pandemic threats.

Though these investments are small compared to the vast AI funding ecosystem—OpenAI alone raised a record $110 billion recently—they mark an emerging wave of startups targeting severe biosecurity challenges, beyond traditional focuses like livestock. Companies like Valthos highlight the alarming reality that biology can now be weaponized faster than cures can be developed. The Red Queen Bio team references the Red Queen hypothesis, emphasizing the need for constant innovation just to maintain safety in this rapidly evolving threat landscape.

This emerging sector reflects a critical and urgent race against evolving biological risks, where lagging behind could have catastrophic consequences.

Ownwell, an AI-driven startup that appeals property taxes for homeowners, has raised $50 million in financing, including $30 million in equity and $20 million in debt. Founded in 2020 and based in Austin, the company has now secured $54 million in equity funding, with its Series B round co-led by Alpha Edison and Mercato Partners. Ownwell leverages technology to automate complex property tax appeal processes by analyzing millions of local records, helping homeowners reduce their tax assessments. The company currently operates in about a dozen states and plans to expand further. It has processed over 1 million appeals, saving customers more than $400 million in property taxes. Ownwell also offers related services such as property exemptions, insurance comparisons, and refinancing options. The startup is profitable and continues to prioritize growth, boasting over 500,000 customers and a 100% annual growth rate since inception.

Runway, a New York-based AI research and technology company specializing in video generation models, announced it has raised $315 million in a Series E funding round. Led by General Atlantic, the round also saw participation from Nvidia, Adobe Ventures, AMD Ventures, Fidelity Management & Research, and Felicis Ventures. This funding elevates Runway's valuation to $5.3 billion, up from $3.3 billion during its Series D round last April. Since its founding in 2018, Runway has raised $860 million in total capital.

Runway develops advanced AI models that allow users to create videos from text prompts or images, with tens of millions of users ranging from major film studios to marketing firms, gaming companies, and sectors such as fintech and robotics. The startup offers subscription plans for individuals and enterprises, with clients including Chime, Robinhood, PayPal, Yamaha, and Prudential. Runway plans to use the new capital to expand its research, improve compute infrastructure, and scale enterprise contracts.

The burgeoning interest in AI-driven video technology is reflected in the sharp increase in global funding for AI video startups, which rose nearly 95% from 2024 to 2025. Runway continues to innovate with generative video models and world simulations aimed at solving complex problems across industries like medicine, climate, and robotics.

Investors are increasingly focusing on larger late-stage startup rounds, signaling a shift in funding patterns. While overall late-stage investment has climbed, funding for rounds $30 million and under has steadily declined for six consecutive years, hitting a low in 2025 with just $1.36 billion invested in 69 rounds, less than 2% of all late-stage investments. Early 2026 shows an even sharper decline, with smaller rounds representing only about 0.2% of late-stage funding—the lowest ever recorded.

This trend contrasts sharply with 2016, when over half of late-stage rounds were under $30 million, representing more than a sixth of the investment share. Now, small rounds rarely dominate, reflecting a broader investor preference for backing a few potential winners rather than spreading capital thinly.

Factors contributing to this shift include less appetite from major tech companies for smaller acquisitions due to antitrust concerns, and reduced interest from private equity because of higher borrowing costs. As a result, clear exit opportunities for moderate-scale startups are limited, pushing investors to prioritize those with the highest growth potential.

Some startups still pursue smaller rounds when sufficient to reach their next milestone, but the startup funding landscape increasingly favors large, bold investments, especially amid the rise of generative AI and mega-rounds.

Sriram Viswanathan, founding managing partner of Celesta Capital, shares insights on the growing importance of the secondary market for liquidity in deep tech investing. Founded in 2013, Celesta Capital focuses exclusively on deep tech, managing $1.1 billion in assets and boasting an impressive track record with 110 investments and 43 exits, including notable companies like Credo and Habana Labs. With startups staying private longer, the secondary market is becoming vital, especially in capital-intensive deep tech sectors. Viswanathan discusses how excess capital chasing fewer deals has heightened demand in the secondary market and the shift investors are making to gain exposure by purchasing stakes from early investors. He highlights the unique dynamics in deep tech, particularly in AI, where secondary investors prioritize identifying winners over immediate revenue or cash flow. While acknowledging potential market froth and valuation increases, Viswanathan stresses that the fundamentals of building meaningful, revenue-generating businesses remain crucial. Beyond AI, he sees other promising deep tech areas including biotech, hardware systems, and AI-augmented biological equipment. The prolonged period of private hold times has increased investor impatience, making secondaries a key liquidity option. Ultimately, deep tech firms must balance innovation with demonstrated revenue growth to thrive in this evolving investment landscape.